Dynavox Group Ab

All right. Good morning and welcome to this earnings call where we will cover the fourth quarter 2023, summarizing our business in October, November and December, as well as some comments regarding the full year 2023. So I'm Fredrik Ruben. I am the CEO of Tobii Dynavox.

And I'm Linda Tyring, the CFO of Tobii Dynavox, and I will cover the financials in more detail.

However, we will first, in our usual manner, take you through some brief fundamentals about the company. Then we will summarize the main takeaways from the quarter and we'll have a deeper dive into the financials. And thereafter, there will be a Q&A session. And you can submit questions during the live session in the chat function here in Teams. But we, of course, always welcome offline questions. And you send them by email in the most easiest way to Linda's email address. It's linda.tybling at hubininebox.com. All right, so starting with a short summary of what Tobii Dynavox is about. And this may be repetition for some, but it's still fundamental to really understand the company. First and foremost, it's important to reiterate that our mission and our vision, which I know is very dear not only to our roughly 700 plus colleagues around the world, but also to our ecosystems of partners and investors. And our vision is a world everyone can communicate. And we contribute to this via focusing on our mission, which reads to empower people with disabilities to do what they once did or never thought possible. And this also summarizes two of our main user stories. The first one, the do what you once did, that may refer to the person who led a normal life until a diagnosis such as ALS. which render her unable to control the body or communicate like before. The other half, the never thought possible can refer to the child diagnosed at a very early age with a condition such as autism or cerebral palsy, where thanks to our solutions, he can do much more than the world around him ever thought possible. And on the picture here to the right, you see Brock. Uh, he's from Louisiana, uh, USA is one of our amazing young user diagnosed with non-verbal autism. And he's a great example of this. The market that we serve is hugely underserved. Some 50 million people have a condition so grave. They simply cannot communicate unless they have a solution like ours. And every year about 2 million people are being diagnosed. And yet we estimate that only some 2% of those are actually being helped and the rest. they remain silent. The main reason for this spells lack of awareness, also among the professionals and the prescribers tasked to assist these users and combined with the poor healthcare reimbursement system. Tobii Dynavox, we operate with a global footprint. Today, some three quarters of our business stems out of the US, largely because of a reasonably well functioning funding system, which was established some 20 to 30 years ago. However, our products are sold in about 65 markets around the world, of which the US, Canada, UK, Ireland, Denmark, Sweden, and Norway are markets where we sell directly, while the other remaining markets are sold by a network of some hundred plus reseller partners. Our staff is distributed in a similar way as our revenue. That means that some 70 plus percent of our staff are based in North America with our US headquarters in Pittsburgh, Pennsylvania. Our second largest office is the headquarter here in Stockholm, but we have branch offices in several European countries, as well as in Sudio, China. And as of today, we are about 700 employees in total. In September of last year, we added a new division to our team via the acquisition of ReHadapt, which also means that we welcome some 50 new colleagues, mainly based in the ReHadapt office in Kassel, Germany. And with prior acquisitions, we have then established or increased our presence in the markets such as Belgium, France, Ireland, and Denmark. Tobii Danubox, we provide a comprehensive portfolio of solution. And that ranges, if you look at this slide on the top, the content such as the world's leading library of communication symbols, they're called PCS. but also the leading solutions of off-the-shelf or custom-made synthetic voices of the highest quality, quality with a large diversity of languages, ages, ethnicities. If you then go further down, we have highly sophisticated communication software tailored to the type of user, which can of course vary greatly depending on the need. Further down, we develop and design devices with cutting edge technology and medically certified durability, including communication aids that can control via eye tracking and accessories such as the ReHadapt mounts. Further on, we have a services portfolio to help our users through the complexities of obtaining and getting funding for solutions. And then last but not least, we are there to help our users, therapists, caregivers through the global teams of support resources. And we operate this model globally. And it's important to note that each piece of this list is critically important and also significant differentiator for us, making us absolutely unique. Our go-to-market model is predominantly as prescribed aids and some 90% of our revenue hands comes from public or private insurance providers. But this also means that we have solid paying customers and have always been very resilient towards changes in the overall economic climate. All right, but now we will go back at focusing on the main topic of today, namely our earnings report for the fourth quarter of 2023, as well as some comments on the full year 2023. So if I summarize some of the highlights, we had another very, very strong quarter when it comes to revenue growth. The growth compared to the same quarter previous year sums up to 31%, and adjusted for currency effects, it was 30%. And this basically continues the trend that we have seen for the past seven quarters since the second quarter of 2022. Furthermore, during the fourth quarter, we continued to report good growth across the board in all geographies, all product groups, and all user groups. And we do really benefit from a market-leading and up-to-date product portfolio, which we continuously improve with new products and new features. Our work to improve awareness and competence continue specifically among the prescribers and the professional. In North America, the North American market continues to show strong growth. It's by far the largest and most influential market, both for us and for our entire industry. But we have actually equally good growth rates also in, for example, Europe and other countries. The strong momentum among younger, the younger user base continues. And that includes then children, for example, with autism who rely typically on our symbol communication solutions. And in particular, we have a software here called the TD Snap. Our OPEX levels do increase, but at the lower rate compared to the sales increase. In addition to acquisitions, we continue to invest in our staff, mainly within sales and marketing, but we also invest in systems and tools. We continue to improve our profitability at an even faster pace. So our operating profit in the quarter more than doubled and our earnings per share increased by 163% compared to the same quarter in 2022. If I then look at the full year 2023, we can conclude that it was a solid regarding our top line growth with sales up by 33%. And if we're just that in local currencies, that growth was 27%. Our profitability improved significantly in the full year, 88% better than the prior year with earnings per share more than doubled. And this really proves the case that our business is now really starting to scale quite well. The fundamental factor behind this is again, the hugely underserved potential in the market. Our attractive customer offering, which continues to strengthen through significant product launches, but also was also a key growth driver, as well as successful acquisitions, such as the addition of our longstanding German partner, Readapt. And that is now a fully owned subsidiary of Torbjörn Evox since sometime last fall. One more factor behind our growth, but also as an important factor to ensure that the growth can sustain, or our continued and significant investments within our sales and marketing organization, but also in systems, tools, processes to secure that we can continue to grow and further scaling. Linda, let us take us over a little bit more deeper into the financials, please.